As we enter the tax filing season, it's important to note that tax return identity theft is a real and serious threat.
The IRS has identified a new scam and issued a warning to tax preparers and financial institutions to help protect tax filers from becoming victims. Essentially, scammers are obtaining enough information about an individual to file a fake tax return on behalf of a victim. In some cases, the fraudster will actually have that fake return sent to the victim’s actual bank account. The fraudster then contacts the victim claiming to be a representative of the IRS or a debt collection agency on behalf of the IRS and requests that the victim send them the funds from the false return.
Click here to read the complete IRS news release, 'Tax Pros Urged to Step Up Security as Filing Scheme Emerges, Reminded to Report Data Thefts.'
See IRS Publication 4524, Security Awareness for Taxpayers, to learn more.